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contract > formation- ICLR > Flashcards

formation- ICLR Flashcards

1
Q

what is intention to create legal relations

A

each party to a contract must intend the agreement to be
legally binding and therefore enforceable in court

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2
Q

is ICLR determined objectively or subjectively

A

objectively

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3
Q

presumption in social or domestic agreements

A

not intended to form a contract

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4
Q

case where there was no ICLR in social/domestic agreements

A

Balfour v Balfour

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5
Q

Balfour v Balfour facts

A
  • promised to pay allowance but failed
  • domestic arrangement as it was made at an amicable point in their relationship so no ICLR
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6
Q

case where there was ICLR in social/domestic agreements

A

Merritt v Merritt

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7
Q

Merritt v Merritt facts

A

agreement to send her money held to create legally binding obligations as they were separated and about to get divorced

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8
Q

what must the court examine in social/domestic agreements

A

the real purpose of the arrangement as they can appear similar to business arrangements

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9
Q

case for examining real purpose of social arrangements

A

Snelling v Snelling

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10
Q

Snelling v Snelling facts

A
  • 3 brothers directors of family business
  • made agreement that is they resigned they would forfeit their loaned money
  • one brother tried to recover the money he loaned
  • agreement was intended to be legally binding given the context- 3 brothers directors of family business
  • made agreement that is they resigned they would forfeit their loaned money
  • one brother tried to recover the money he loaned
  • agreement was intended to be legally binding given the context
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11
Q

case examining real purpose of arrangement that was a mere domestic agreement

A

Jones v Padavatton

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12
Q

Jones v Padavatton facts

A
  • mother persuaded daughter to move from US to UK
  • fell out and mother tried to evict daughter
  • at time arrangement was made they were very close so neither party intended to enter legally binding contract
  • mere domestic agreement
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13
Q

what happens if money has exchanged hands or 3rd party involved

A

could provide evidence to rebut presumption of no iCLR

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14
Q

case for 3rd party

A

Simpkins v Pays

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15
Q

Simpkins v Pays facts

A
  • agreement between family members and lodger over shared winnings from competition was legally binding
  • inclusion of a non-family member meant they intended to create legal relations
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16
Q

what is parties put their financial security at risk

A

likely they intended this to be legally binding

17
Q

case for financial security at risk

A

Parker v Clark

18
Q

Parker v Clark facts

A
  • couple persuaded to sell their house and move in with
  • couples fell out, asked to leave
  • legally binding agreement as selling their house and share costs indicated it was intended to be legally binding
19
Q

presumption in business or commercial agreements

A

intended to be a contract

20
Q

is there ICLR where free gifts are offered to promote business

A

yes ICLR is found where free gifts or prizes offered to promote business

21
Q

case for prizes to promote business

A

McGowan v Radio Buxton

22
Q

McGowan v Radio Buxton facts

A
  • entered and won a radio competition to win a car
  • was sent a toy car
  • court decided there was an enforceable contract as there was no hint that it would be a toy
23
Q

how can presumption of ICLR be overturned

A

with clear evidence that there was never any intention to create legal relations

24
Q

case for overturning ICLR w clear evidence

A

Jones v Vernon Pools

25
Q

Jones v Vernon Pools facts

A
  • football pools entry form, entered competition and won
  • they refused to pay as it stated the agreement was binding in honour only on the back
  • words meant agreement was not intended to create legal relations so no contract
26
Q

how can a business argue they never intended to create a contract

A

arguing language used was only designed for comfort

27
Q

case for language as comfort

A

Kleinwort Benson v Malaysia Mining

28
Q

Kleinwort Benson v Malaysia Mining facts

A

-company got a loan
-wrote them a comfort letter
-went into liquidation
-bank relied on letter
-comfort letter was only designed to reassure recipient not ICLR

contract (5 decks)

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